b p p l holdings plc · accordance with sri lanka accounting standard - lkas 34 –interim...

B P P L Holdings PLC

Unaudited Interim Condensed Consolidated Financial Statements

for the First Quarter ended

30th June 2017

B P P L Holdings PLCCEO’S REVEIEW

Dear Shareholders,

Meanwhile, roll out of BPPL Holding’s synthetic yarn extrusion facility remained on track with

the machinery expected by December 2017. Yarn production is set to commence in the January

to March quarter of 2018 and contribute to revenue from April 2018.

The company also continued to roll out its own brand of products in South-East Asia with a

sales office being opened in Malaysia during the quarter. This office will also support Brunei. In

the meantime, coverage continued to grow in Indonesia with three national hypermarket

chains and seven local stores in the Jakarta region carrying our products. The total active store

count was 180 at the end of June 2017.

Sales growth was severely impacted by the floods in Sri Lanka in May which affected timber

supplies. The threat of landslides also affected the uprooting of rubber trees. The situation,

however, has normalized now. As a result, we expect higher levels of sales growth in the July

2017 to September 2017 quarter.

BPPL Holdings announced today its unaudited financial results for the three month period April

2017 to June 2017.

Consolidated revenue for the period was Rs.552 million, up 8% over the corresponding period

in the previous year. The North American region accounted for 83% of the reported revenue.

The region saw a 10% increase in revenue over the previous financial year. Robust growth was

also seen in Australia, and the European region.

In the United States, robust revenue growth was seen in the food services, janitorial and

industrial sectors. Revenue growth was also strong in Australia as a key customer completed its

inventory adjustment program which began in the previous financial year. New customer

accounts also boosted revenue growth in Europe as well as in the United States. Sales to

Britain, however, was slower due to Sterling depreciation vs. the Sri Lankan Rupee and lower

order requirements of customers which have made imports from Eastern Europe more cost

effective for that market.

Gross profit was flat at Rs.204 million for the quarter as gross margins fell due to wage

escalation as a result of the floods. Irregular timber supplies increased overtime payments.

Costs were also higher due to temporary worker hiring in order to process orders as and when

timber was received. The gross profit margin fell to 37% from 40% during the three month

period ended June 2017. Approximately 2% of this 3% drop was due to the higher temporary

wages. The balance 1% was due to the short term increase in timber prices.

Profit-After-Tax attributable to the company’s shareholders was also flat at Rs79 million for the

quarter. Non-annualized EPS for the period amounted to Rs 0.26.

B P P L Holdings PLC also declared a first interim dividend of Rs 0.18 per share for the financial

year 2017/18.

Page 1

B P P L Holdings PLCCEO’S REVEIEW

About BPPL

Managing Director / Chief Executive Officer

Founded in 1984, BPPL Holdings manufactures a range of high quality, durable cleaning

products for both professional and household applications. Leveraging on its sustainable

manufacturing and vertically integrated processes, coupled with commitment to consistent

quality, on-time delivery, reasonable pricing and flexibility allows it to supply to major

distributors and retailers of cleaning tools worldwide.

Dr. Anush Amarasinghe

Page 2


STATEMENT OF FINANCIAL POSITION

As at 30 June 2017

Unaudited Audited Unaudited Audited

30-Jun-17 31-Mar-17 30-Jun-17 31-Mar-17

ASSETS Rs. Rs. Rs. Rs.

Non-Current Assets

Property, Plant and Equipment 1,490,607,837 1,420,762,541 741,705,488 698,446,298

Lease hold land 8,677,358 8,723,559

Intangible Asset 13,947,513 11,330,268 907,601 197,609

Investment in Subsidiaries - - 367,626,688 367,626,688

Other Investments - - - -

Deferred Tax Assets - -

1,513,232,708 1,440,816,368 1,110,239,777 1,066,270,595

Current Assets

Inventories 502,620,607 521,257,432 103,315,193 109,239,129

Trade and Other Receivables 708,437,508 651,196,103 135,023,642 114,762,685

Income Tax Receivables 137,329 185,840

Differed Tax 528,437 322,226

Cash and Bank Balances 63,936,739 22,209,867 37,450,412 4,045,847

1,275,660,620 1,195,171,468 275,789,247 228,047,661

Total Assets 2,788,893,328 2,635,987,835 1,386,029,024 1,294,318,256

EQUITY AND LIABILITIES

Capital and Reserves

Stated Capital 100,371,584 100,371,584 100,371,584 100,371,584

Revaluation reserve 259,933,800 259,933,800 257,827,800 257,827,800

Retained Earnings 1,733,079,162 1,654,940,657 446,590,784 375,860,037

2,093,384,546 2,015,246,041 804,790,168 734,059,421

Minority Interest - -

Total Equity 2,093,384,546 2,015,246,041 804,790,168 734,059,421

Non-Current Liabilities

Interest Bearing Loans and Borrowings 72,785,307 83,072,414 -

Deferred Tax Liabilities 44,989,149 43,802,703 16,609,186 15,863,334

Retirement Benefit Obligations 46,891,003 46,172,815 14,027,626 13,597,626

164,665,460 173,047,933 30,636,812 29,460,960

Current Liabilities

Trade and Other Payables 133,877,979 139,771,484 422,218,562 455,171,090

Income Tax Payable 27,408,176 25,096,752 4,517,083 4,807,846

Interest Bearing Loans and Borrowings 369,557,167 282,825,627 123,866,400 70,818,939

530,843,322 447,693,863 550,602,045 530,797,875

Total Equity and Liabilities 2,788,893,328 2,635,987,835 1,386,029,024 1,294,318,256

These Financial Statements are in compliance with the requirements of the Companies Act No :07 of 2007.

Vernee Kularasan

Senior Manager - Finance

Dr Anush Amarasinghe Vaithilingam Selvaraj

Director Finance / Chief Financial Officer

The accounting policies and notes form an integral part of the financial statements.

July 27, 2017

Colombo

Group Company

The board of directors is responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the

board by:

Managing Director / Chief Executive Officer

Page 3

BPPL HOLDINGS PLC

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the period ended 30 June 2017

30-Jun-17 30-Jun-16 30-Jun-17 30-Jun-16

Rs. Rs. Rs. Rs.

Revenue 551,976,643 512,988,876 152,442,795 143,132,586

Cost of Sales (348,275,985) (308,904,727) (117,231,029) (99,602,568)

Gross Profit 203,700,658 204,084,149 35,211,767 43,530,019

Other Operating Income 1,618,911 40,520 56,224,417 991,520

Distribution Costs (56,665,741) (51,101,139) (6,745,024) (6,570,371)

Administrative Expenses (57,190,966) (53,016,058) (10,256,953) (9,770,119)

Finance Cost (5,134,867) (6,704,742) (1,134,765) (4,144,411)

Finance Income 33,578 41,574 904 793

Profit Before Tax 86,361,572 93,344,305 73,300,345 24,037,432

Income Tax Expense (7,851,394) (14,946,699) (2,569,602) (6,369,317)

Profit for the Period 78,510,178 78,397,606 70,730,743 17,668,115

Other Comprehensive Income

- - - -

Deferred tax adjustment - - - -

- - - -

Deferred tax adjustment - - - -

- - - -

Total Comprehensive Income/ (Loss) for the period 78,510,178 78,397,606 70,730,743 17,668,115


Group Company

Remeasurement of employee benefit obligations

Revaluation Gain on Land & Buildings

Total Other Comprehensive Income/ (Loss) for the period

Page 4

B P P L Holdings PLCSTATEMENT OF CHANGES IN EQUITY


Stated Retained Total

Capital Earnings Equity

Group Rs. Rs. Rs.

Balance as at 31 March 2017 100,371,584 259,933,800 1,654,568,984 2,014,874,368

Profit for the Period - - 78,510,178 78,510,178

Other Comprehensive Income - - - -

Balance as at 30 Jun 2017 100,371,584 259,933,800 1,733,079,162 2,093,384,546

Company

Balance as at 31 March 2017 100,371,584 257,827,800 375,860,041 734,059,425

Profit for the Period - - 70,730,743 70,730,743

Other Comprehensive Income - - - -

Balance as at 30 Jun 2017 100,371,584 257,827,800 446,590,784 804,790,168


Revaluation

reserve

Page 5

BPPL HOLDINGS PLC

STATEMENT OF CASH FLOW


30-Jun-17 30-Jun-16 30-Jun-17 30-Jun-16

Rs. Rs. Rs. Rs.

Cash Flow from Operating Activities

Profit before tax 86,361,572 93,344,305 73,300,345 24,037,432

Adjustments for

Depreciation 18,648,478 15,752,773 4,585,057 3,193,982

Provision for Retirement Benefit Obligations 2,809,494 3,371,562 780,000 884,075

Interest Income (33,578) (41,574) (904) (793)

Dividend Income - - (55,223,976) -

Finance Cost 5,134,867 6,704,742 1,134,765 4,144,411

Profit from disposal of fixed assets - - - -

Operating Profit Loss Before Working Capital Changes 112,920,833 119,131,807 24,575,287 32,259,106

(Increase)/Decrease in Inventories 18,636,825 (40,563,081) 5,923,936 (2,697,485)

(Increase)/Decrease in Trade and Other Receivables (57,241,405) 23,194,361 (20,260,957) 32,237,656

Increase/(Decrease) in Trade and Other Payables (5,893,505) 14,048,394 (32,952,528) (4,520,963)

Cash Generated from Operations 68,422,748 115,811,480 (22,714,261) 57,278,314

Income Tax Paid (4,882,915) (209,565) (2,114,513) (0)

Retirement Benefit Obligations Costs paid (2,091,306) (757,896) (350,000) (3,418,233)

Interest Paid (5,134,867) (6,704,742) (1,134,765) (4,144,411)

Cash Flow from Operating Activities 56,313,660 108,139,278 (26,313,540) 49,715,670

Cash Flow from Investing Activities

Acquisition of Property, Plant and Equipment (91,064,818) (3,846,419) (48,554,239) (431,376)

Investment in group comp - - - -

Proceeds from Disposal of PP&E - - - -

Proceeds from non operation operation - - - -

Interest Received 33,578 41,574 904 793

Dividend Received - - 55,223,976 -

Capital Work In Progress - - - -

Net Cash Flows used in Investing Activities (91,031,240) (3,804,845) 6,670,641 (430,582)

Cash Flow from Financing Activities

Net of Interest Bearing Loans and Borrowings 65,102,702 (6,711,707) 74,285,122 (7,433,487)

Dividends Paid - - - -

Net Cash Flows from/(used in) Financing Activities 65,102,702 (6,711,707) 74,285,122 (7,433,487)

Net Increase/ (Decrease) in Cash and Cash Equivalents 30,385,122 97,622,726 2,635,987,835 41,851,601

Cash and Cash Equivalent at the beginning of the period (10,549,447) (30,519,359) (17,191,811) (25,499,097)

Cash and Cash Equivalent at the end of the period 19,835,675 67,103,367 37,450,412 16,352,504


Group Company

Page 6


Notes to Interim Condensed Financial Statements

1 CORPORATE INFORMATION

Subsidiary Controlling interest

Beira Brush (Private) Limited 100%

Beira Enviro Solutions (Private) Limited 100%

BPPL Enterprises (Private) Limited 100%

2 BASIS OF PREPARATION

2.1 Statement of Compliance

2.2 Basis of measurement

-

-

Freehold Land and buildings are measured at cost at the time of acquisition and construction and

subsequently at revalued amounts, which are the fair values at the date of revaluation less

accumulated depreciation and impairment losses, if any.

Employee benefits are recognized as the net total of the plan assets, plus unrecognized past service

cost and unrecognized actuarial losses, less unrecognized actuarial gains and the present value of the

defined benefit obligation.

B P P L Holdings PLC is a public limited liability Company incorporated and domiciled in Sri Lanka and is

listed on the Colombo Stock Exchange. The Company’s parent undertaking is Infinity Capital (Private)

Limited, which is incorporated in Sri Lanka. The Group is principally engaged in the provision of wooden

handles, brooms, brushes, mops and synthetic fibre. The registered office of the Company and principal

place of business is situated at Level 17, Access Towers, No. 278/4, Union Place, Colombo 02.

The Interim Consolidated Financial Statements comprise of the Company and its subsidiaries (together

referred to as the "Group" and individually Group entities). The subsidiaries of the Company are set out

below,

The Interim condensed Financial Statements of the Company and Group have been prepared in

accordance with Sri Lanka Accounting Standard - LKAS 34 – Interim Financial Reporting. This Interim

Financial Statement should be read in conjunction with the Annual Financial Statements for the year

ended 31st March 2017 including the changes to accounting policies as a result of adapting to Sri Lanka

Financial Reporting Standards,(" SLFRSs/LKASs").

The Financial Statements have been prepared on the historical cost basis and applied consistently with

no adjustments being made for inflationary factors affecting the financial statements, except for the

following;

Page 7



2 BASIS OF PREPARATION (Cont...)

2.1 Functional Currency and Presentation Currency

3 ACCOUNTING POLICIES

4 FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES

4.1 Finance Commitments

4.2 Contingent Liabilities

5 EVENTS AFTER THE REPORTING PERIOD

Dividends

6 STATED CAPITAL

The Company's stated capital consists of 306,843,357 ordinary shares.

All values presented in the Financial Statements are in Sri Lankan Rupees which is the Group's functional

currency, unless otherwise indicated.

The accounting policies adopted are consistent with the previous financial year.

The Board of Directors confirmed that the company satisfied the solvency test in accordance with section 57 of

the companies Act no 7 of 2OO7 and obtained a certificate from the auditors, prior to declaring the interim

dividend.

Apart from the above, subsequent to the reporting date, no circumstances have arisen which required

adjustment to or disclosure in the Financial Statements.

There are no any material financial commitments

There are no any contingent liabilities

The company declared its first interim dividend of Rs 0.18 per ordinary share on 27th July 2017 for the Financial

year 2018 and the dividend payment will be made on 17th August 2017.

Page 8



7 INVESTOR INFORMATION

7.1 Ordinary Shareholders as at 30th June 2017

No. of

Shareholders

No. of

Shares%

No. of

Shareholders

No. of

Shares%

No. of

Shareholders

No. of

Shares%

216 88,709 0.03% - - 0.00% 216 88,709 0.03%

139 711,253 0.23% - - 0.00% 139 711,253 0.23%

114 4,424,966 1.44% 3 182,949 0.06% 117 4,607,915 1.50%

40 14,843,378 4.84% 2 636,328 0.21% 42 15,479,706 5.04%

5 283,379,474 92.35% 1 2,576,300 0.84% 6 285,955,774 93.19%

514 303,447,780 98.89% 6 3,395,577 1.11% 520 306,843,357 100.00%

No. of

Shareholders

No. of

Shares%

465 13,180,431 4.30%

55 293,662,926 95.70%

520 306,843,357 100.00%

7.2 Share Trading Information

30-Jun-17 30-Jun-16 31-Mar-17 31-Mar-16

Share Information

Highest Price (Rs.) 16.00 N/A N/A N/A

Lowest Price (Rs.) 12.00 N/A N/A N/A

Closing Price (Rs.) 15.50 N/A N/A N/A

Trading Statistics

No. of transactions 2,355 N/A N/A N/A

No. of shares traded 23,355,142 N/A N/A N/A

Value of shares traded (Rs.) 332,365,988 N/A N/A N/A

7.3 Public Holding as at 30th JUNE 2017

Ordinary shares of the Company held by the public as at 30th June 2017;

- Percentage of ordinary shares held by the public 10%

- Number of Public Shareholders 517.

There were no non-voting shares as at 30th June 2017.

The Stock Exchange code for BPPL Holding PLC shares is “BPPL”.

2.6E+09

7.4 Dividend Payment

First Interim Dividend 2017/18 - 18 Cents per share will be paid on 17th August 2017.

Category

No. of shares held

RESIDENTS NON RESIDENTS TOTAL

1-1,000

1,001-10,000

10,001-100,000

100,001-1,000,000

Over 1,000,000

Total

Individuals

Institutions

Total

The Company was listed with the Colombo Stock Exchange of Sri Lanka on 4th April 2017. Therefore, there were no share trading prior to 4th April 2017.

Quarter Ended Year Ended

Page 9



7 INVESTOR INFORMATION (Cont...)7.5 Twenty Major Shareholders

No

No. of Shares

as at

30 June 2017

%

1 154,382,777 50.31%

2 80,546,372 26.25%

3 41,229,208 13.44%

4 3,774,816 1.23%

5 3,446,301 1.12%

6 2,576,300 0.84%

7 1,000,000 0.33%

8 772,800 0.25%

9 762,567 0.25%

10 750,000 0.24%

11 733,400 0.24%

12 732,100 0.24%

13 732,100 0.24%

14 730,000 0.24%

15 645,100 0.21%

16 600,000 0.20%

17 556,520 0.18%

18 476,600 0.16%

19 419,200 0.14%

20 412,700 0.13%

295,278,861 96.23%

8 DIRECTOR'S SHAREHOLDINGS

No. of Shares

-

-

-

-

-

-

-

-

Mr. Manjula De Silva

Mrs. Sharmini Ratwatte

Mr. Savantha S De Saram

INED

Director-Finance/ CFO

Director-Factory operations

NED

INED

INED

Mr. Ranil Pathirana

GF Capital Global Ltd

Katunayake Garments Ltd

Mr. Hirdaramani - Aroon Janak

Name of the Director Role

Mr. Sarath Amarasinghe

Dr. Anush Amarasinghe

Mr. Vaithilingam Selvaraj

Mr. B D P D Perera

Chairman

Managing Director/CEO

Lanka Century Investments PLC

Mr. Samaranayake Nihal Parakrama De Alwis

Ceylon Knit Trend Ltd

Mr. Hirdaramani Akshay Anil

Mr. Hirdaramani Mahesh Lalchand

Deutsche Bank AG Comtrust Equity Fund

Seylan Bank PLC/ W.D.N.H.Perera

Mr. Fernando Merrill Joseph

Mr. Esufally Murtazaali Abidhussen Hassanaly

Deutsche Bank AG Singapore Branch

Ms. Page Marianne Mahilmalar

Jafferjee Brothers (Exports) Ltd

Hirdaramani Investment Holdings (Pvt) Ltd

J.B. Cocoshell (Pvt) Ltd

Seylan Bank PLC/ ARRC Capital (Pvt) Ltd

Name of the Shareholder

Infinity Capital (Pvt) Ltd

LOLC Investments Ltd

Page 10

Office Addresses

Head Office Offshore Offices:

Level 17,

Access Towers, Canada

No. 278/4, Union Place, Beira Marketing Services (N.A) Inc,

Colombo 02 1465,

Caulder Drive,

Wood, Brush and Mop Factory Oakville,

No 88, Ontario, L6J 5T1,

Ratnapura Road, Canada

Ingiriya

Malaysia

Synthetic Filament Factory Suite 11.01, Level 11,

Batuvita, South Wing, Menara OBYU,

Mawgama, 4, Jalan PJU 8/8A,

Horana. Damansara Perdana,

47820 Petaling Jaya,

Recycling Plant Selangor Darul Ehsan,

Lot 7, Malaysia.

Horana Export Processing Zone,

Boralugoda, Indonesia

Poruwadonda, Grand Slipi Tower 9th floor,

Horana. Unit G JI.Jend.S.Parman Kav 22-24 Slipi,

West Jakarta,

11480,

Indonesia.

Page 11

CORPORATE INFORMATION

Company Name B P P L Holdings PLC

Date of Incorporation 26th August 1991

Legal Form Incorporated in Sri Lanka on 26th August 1991 as a public company under the

Companies Act No. 17 of 1982 [N (PBS) 291)], re-registered under the Companies

Act No. 07 of 2007 on 21st January 2009 (PB 859), converted to a private limited

liability on 20th July 2012 (PB 859 PV),converted to a public company on 29th July

2016 (PB 859 PV) and subsequently converted to Public Quoted Company (PB 859

PQ) on 29th June 2017 . Authority of Incorporation: Registrar of Companies (ROC), Company Registration Number PB 859 PQ

Registered Office and Current Place of

Business

B P P L Holdings PLC,

Level 17, Access Towers,

No. 278/4, Union Place,

Colombo 02.

Tel : +94 11 2307168

Fax: +94 11 2307169

Board of Directors Mr. Sarath Dayantha Amarasinghe – Chairman

Dr. Anush Amarasinghe – Managing Director / Chief Executive Officer

Mr. Vaithilingam Selvaraj - Executive Director / Chief Financial Officer

Mr. B. D. Prasad Devapriya Perera - Executive Director

Mr. Ranil Pathirana – Non-Executive Director

Mr. Manjula De Silva - Independent Non- Executive Director

Mrs. Sharmini Ratwatte - Independent Non- Executive Director

Mr. Savantha De Saram – Independent Non-Executive Director

Company Secretary Secretarius (Pvt) Ltd.

3rd Floor, 40, Galle Face Court,

Colombo 03.

Tel : +94 11 2333431

Fax: +94 11 2381907

Company Registrar S S P Corporate Services (Private) Limited,

101, Inner Flower Road, Colombo 03.

Tel : +94 11 2573894

Fax : +94 11 2573609

Email : [email protected] to the Company Messrs. Ernst & Young (Chartered Accountants)

201, De Saram Place,

Colombo 10.

Tel : +94 11 2204444

Fax: +94 11 2697369

Lawyers to the Company AIM LAW

Attorneys-at-Law and Notaries Public

No. 514C, R A De Mel Mawatha

Colombo 03.

Tel: +94 11 2503426/ +94 712 228 044

Email: [email protected]

Company Website www.beiragroup.com

Company E-Mail [email protected]

Bankers to the Company Bank of Ceylon

04, Bank of Ceylon Mawatha,

Colombo 01.

Tel :+94 11 2204444

Fax:+94 11 2321160

National Development Bank PLC

42, DHPL Building, Nawam Mawatha,

Colombo 02.

Tel : +94 11 2448448

Fax: +94 11 2341044

Hongkong and Shanghai Banking Corporation Limited

24, Sir Baron Jayathilake Mawatha,

Colombo 01.

Tel : + 94 11 2325435

Fax: + 94 11 2690177

Page 12

http://www.beiragroup.com/

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b p p l holdings plc · accordance with sri lanka accounting standard - lkas 34 –interim...

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